Atlas Financial Holdings, Inc. (NASDAQ:AFH) reported third-quarter 2017 operating income of 63 cents per share that beat the Zacks Consensus Estimate by 50%. The bottom line also improved 21% year over year on higher revenues.
Atlas Financial Holdings, Inc. Price, Consensus and EPS Surprise
Behind the Headlines
Atlas Financial’s revenues surged 26.7% year over year to $57 million on higher net premiums earned (up 29.2%) and a significant rise in other income (up 125.5%). A 36% year-over-year decline in net investment income limited the upside. The top line also missed the Zacks Consensus Estimate by 4.2%.
The company’s total expenses increased 36.3% year over year to $49.6 million due to a rise in net claims incurred, acquisition costs, interest costs and other underwriting expenses.
Atlas Financial’s underwriting income was $6.8 million, down 5.5% year over year. Combined ratio deteriorated 440 basis points (bps) year over year to 87.9%.
Financial Update
Atlas Financial exited the quarter with cash and cash equivalents of $40.2 million, up 34.4% from 2016-end level.
Total assets of Atlas Financial increased 6.3% from year-end 2016 to $450.4 million as of Sep 30, 2017.
Debt level increased 25% from year-end 2016 to nearly $24 million as of Sep 30, 2017.
Total shareholders’ equity increased 13.4% from year-end 2016 to $144.4 million.
Book value was $11.96 per share as of Sep 30, 2017, up 13.5% from year-end 2016.
Atlas Financial’s return on average common equity was 14.5% in the quarter, lower than 18.5% in the year-ago quarter.
Zacks Rank
Atlas Financial carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here..
Performance of Other Insurers
Among other players from the insurance industry that have reported third-quarter earnings so far, the bottom line of The Progressive Corporation (NYSE:PGR) , The Travelers Companies, Inc. (NYSE:TRV) and RLI Corp. (NYSE:RLI) beat the respective Zacks Consensus Estimate.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Click here for Zacks' secret trade>>
RLI Corp. (RLI): Free Stock Analysis Report
The Travelers Companies, Inc. (TRV): Free Stock Analysis Report
Progressive Corporation (The) (PGR): Free Stock Analysis Report
Atlas Financial Holdings, Inc. (AFH): Free Stock Analysis Report
Original post
Zacks Investment Research